PPF Vs Sukanya Samriddhi Yojana: Are you thinking of investing for the future of children? Then this news is of your use.
New Delhi: PPF Vs Sukanya Samriddhi Yojana: Are you thinking of investing for the future of children? Then this news is of your use. Yes, by investing in both Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF), your money is safe and good returns are also available. But many people are confused thinking that in which scheme to invest, where will get more returns? Let us talk in detail on this further.
Both popular government schemes
Sukanya Samriddhi Yojana (SSY) is a popular scheme of the central government. In this, you can invest in the name of the daughter only. But in PPF, you can invest in anyone’s name. Let us know which scheme is more beneficial among Sukanya Samriddhi Yojana and PPF?
Sukanya Samriddhi Yojana or PPF
The current interest rate on Public Provident Fund is 7.1 percent. At the same time, the interest of 7.6 percent is available on Sukanya Samriddhi Yojana (SSY). According to this, you will say that investing in Sukanya Samriddhi Yojana (SSY) will be good. But experts advise that you should invest in both the schemes. Despite getting less interest in PPF, he kept investing a part of his earnings in PPF as well.
Investment in PPF
There is a lock-in period of 15 years in PPF. After 15 years, you can extend it further for 5-5 years. If you invest in both the schemes, you get exemption on investment up to 1.5 lakh under section 80C of Income Tax. You can deposit a minimum of Rs 500 and a maximum of Rs 1.50 lakh in PPF account annually.
Investment in Sukanya Samriddhi Yojana
The minimum amount to invest in Sukanya Samriddhi Yojana (SSY) is Rs 250. In this scheme, a minimum of Rs 250 and a maximum of Rs 1.50 lakh can be deposited annually. This scheme has been started for the purpose of daughter’s education / marriage. For this reason, a higher rate has been kept in it than PPF. It can also be invested till the daughter attains the age of 15 years. No deposit is allowed between 16th to 21st year. But the account holder gets interest on the deposit amount.
Where is the maximum amount on maturity?
If you deposit Rs 1.50 lakh in PPF account every year, then you will get Rs 40.68 lakh on maturity of 15 years at the current rate of interest (7.1 percent). On the other hand, on the maturity of 21 years, you get 63.65 thousand rupees by depositing 1.50 lakh rupees every year in Sukanya Samriddhi Yojana (SSY). This account can be opened only till the child attains the age of 10 years.
